Financial Accounting: Return on assets A company borrows $0.70 for every $1 of equity. They earn $0.25 in profit for every $1 of equity in the firm. What is the firm's return on assets (ROA)?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...
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Financial Accounting: Return on assets A company borrows $0.70 for every $1 of equity. They earn $0.25 in profit for every $1 of equity in the firm. What is the firm's return on assets (ROA)?

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